Gyroscopic Investing

In your opinion, is silver a good VP investment currently?

Silver is down ~30% to ~$33 from the April ~$48 high.  OTOH, it's up ~79% from ~$18 from 1 yr ago.

The current Jun-28 gold silver ratio (as measured by ETFs: 10*SGOL/SIVR) is 44.3

Silver tends to be very volatile, much more than gold.  It can (in theory) lose another 30% of its value next week and make up all of that by the end of the month.  Part of the volatility is attributable to it being an industrial metal (used to make physical products like water filters, electrical wiring and connectors, catalysts, solar panels, etc.) whereas gold has relatively fewer industrial uses. 

If you can endure the volatility, periodically take profits, and have enough confidence in your ability to time the market, yes, it's still good for the VP. 

Silver seems to have more downside potential right now than gold because of it's use as an industrial metal.  If the economy goes back into recession, silver might fall.  On the other hand, if the economy does well, consumer demand for all things electronic (that need silver) might increase.

Storm wrote: Silver seems to have more downside potential right now than gold because of it's use as an industrial metal.  If the economy goes back into recession, silver might fall.  On the other hand, if the economy does well, consumer demand for all things electronic (that need silver) might increase.

Tight credit markets are also not good for silver, since a lot of that speculative money is borrowed.